There are a lot of ways for that to go wrong.The answer to the Myr civil war problem simple. Steele just needs to acquire a massive amount of the Orange Myr TF and dump it in the water supply.
How much does the general population know about TFs? I'd expect a great deal of widespread panic.
Both sides are likely to blame the other. Remember, the populations are not mixed. They live in different cities. Sure, there might be former Reds killed by their own side, and Golds likewise, but it's entirely possible for the same ethnicity to wage war upon itself. The differences between the Reds and Golds are not just physical, they're very different culturally and that won't just disappear overnight because they have the same appearance. Even if only one side decides the other is responsible, you've got a problem. If anything, it would be worse. "They look just like us now!", "Anyone could be a Red/Gold spy!", "We should attack before they can infiltrate us!".
If neither side blames the other, the other obvious culprit the UGC. First, they show up with a giant fleet and an extinction-level threat the Myr can't do anything about (saving the Golds, effectively taking sides), then they dump a body-warping substance in the water without asking anybody. At the very least, it doesn't paint a good picture of how the UGC views client states and/or bodily autonomy. Will Steele own up to their actions or let the UGC take the blame?
Both sides have fertility issues. What happens if a nascent Gold Queen takes the Orange Myr TF? Fertile Red? What if an infertile Gold takes it? Or infertile Red?
What happens to non-Myr who drink it? The Bothrioc/Wetraxxel/Ganrael/random wildlife? UGC citizens?
I know TiTS is a Megacorp Dystopia, but applying involuntary TFs on a planetary scale is probably a major crime, especially on a planet that is likely going to become a part of the UGC. While not quite the same, Dr. Lash is hiding from the UGC for attempting to sterilize the dominant life-form of a planet. Steele Tech is rich, but Steele would likely need some major plausible deniability and/or very good lawyers,
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